In the FMCG industry, companies commonly require distributors to add vehicles, which is a consensus in the industry. Improving delivery service capability and increasing visit frequency to refine the market will naturally boost sales, which is undoubtedly correct. However, distributors generally oppose the requirement to add vehicles. Why? I believe it's because manufacturers have not fully considered distributors' management capabilities. 'Han Xin'-level distributors can increase sales capability, grow business volume, and raise profits, achieving a win-win for both manufacturer and distributor. But what about 'Liu Bang'-level distributors? They are already overwhelmed and struggling with current vehicle and personnel management, so how can they add more vehicles? And what about distributors even less capable than 'Liu Bang'? Adding vehicles and personnel is not just about increasing costs by tens of thousands of yuan or adding delivery vehicles; the greater difficulty is the management capability to 'afford the vehicles, manage them, and make money.'
Let's analyze the disadvantages of adding vehicles for distributors.
Difficulty of rising costs. Adding vehicles inevitably increases personnel, thus raising costs. If the profit from increased vehicle allocation exceeds the added cost, it's a success for the distributor. But if the profit increase over a comparable period is less than the expense increase, it's hard for distributors to accept. Especially some distributors with short-term return and short-sighted psychology, they dare not (and will not) attempt to add vehicles.
Difficulty of personnel management. Personnel management is the most headache-inducing issue for distributors (and manufacturers too, of course). All distributors lament: 'Hearts are scattered, and the team is hard to lead.' In a rapidly changing society, various opportunities, temptations, and information make everyone's inner world restless. Especially among grassroots staff, restlessness is more evident, and everyone has different thoughts. I have heard many distributors sigh: 'In the past, hiring someone for a few hundred yuan, they were dedicated; now hiring someone for thousands, they think about changing jobs every day.'
Whether distributors' own management capabilities can handle the requirements of an expanded team. Company management is the top priority for distributors; management yields benefits, which is industry consensus. Improving management and efficiency is the only way for distributors to cope with rising industry costs. But can current FMCG distributors manage a company-operated team well? Personnel recruitment, team training, vehicle safety, per-vehicle output, salary assessment, inventory management... Frankly, many distributors with two vehicles and low-cost operations can achieve annual sales of 6 million and still make a profit. Expanding to four vehicles, even if sales reach 12 million, poor management might lead to losses. Management capability is likely the biggest barrier to adding vehicles.
Looking at the development history of distributors, most started with one vehicle. The basic model then was: the boss as driver, the boss's wife as salesperson, and a relative helping with warehouse or storefront. At that time, the distributor was basically the business; though physically tired, the mind was relaxed, managing oneself with no management difficulty.
Later, as business grew, distributors expanded to two vehicles. Initially, with two vehicles, distributors often drove one themselves and hired a driver and salesperson for the other. Once business stabilized, they hired someone to take over the original vehicle, freeing themselves to focus on large accounts like supermarkets or big secondary wholesalers. At this stage, besides the couple, they managed at most 4-5 people, which wasn't too difficult, but signs of increasing management difficulty were emerging. Distributors began to worry about employee turnover, but it wasn't a big problem because they could fill in themselves if there was a gap.
When expanding to three vehicles, distributors basically detached from the market, and the feeling was 'heart fatigue.' Why? 1. Fatigue from brands. With three vehicles, there are naturally more brands, and companies have high requirements: distribution, display, inventory, terminals, plan execution... Distributors already find it hard to meet company requirements. 2. Fatigue from management. At this stage, distributors have basically stopped daily vehicle delivery and handed specific business to salespeople. Since they no longer sell directly, the key is managing how to make salespeople sell more. Holding business meetings, executing and supervising promotions, recruiting and handling departures... The upgrade work for distributors is not easy.
In summary, many distributor friends face difficulties in adding vehicles, but if bosses want to grow business and increase profits, they still need to improve service and enhance delivery and distribution capabilities. In current business, if you don't advance, you fall behind. To add vehicles, distributors must first improve their own management, upgrade from low-cost operations to management-oriented distributors, and change themselves and their companies from mindset to action. Don't keep reminiscing about the happy low-cost days or complaining about current difficulties.
The only constant in the market is change. I wish all distributor friends can climb a management step, do well in the market, succeed in brand operations, and earn more profits.
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